The media group that prints The Scotsman has reported flat statutory pre-tax profits, which reveals a fall in its underlying profits.
There was a rise in Johnston Press’ overall revenues, though this was skewed by a one-off payment from News International. The global group paid the firm £30m to invoke a release from a live printing contract.
It shows that the revenue available in print advertising continues to fall in some areas. In the first six months of 2012, Johnston also saw falls in its contract printing and revenue from newspaper sales.
Total interim revenues at the firm fell to £176m, a fall of 8.2 per cent.
The company said that full year results are expected to be in line with its forecasts though, providing the national economy does not worsen from its present level.
There was also more news from its digital division. Monthly visitor numbers to its mobile platforms doubled in the first six months of the year.
Like many companies, Johnston Press is continuing to reduce its level of debt. The company said that the compensation received from NI had helped with this.
Other companies are also working to reduce their debt commitments, many through employing different financial strategies. Invoice discounting and factoring are being favoured by many in this regard.
Despite the mixed results, the firm’s chief executive Ashley Highfield is confident for the future and said:
“Johnston Press is going through a strategic transformation.”
Emphasis is being given to the digital side of its operations in this regard, where maintaining a healthy cash flow is essential – something which many Scottish companies will understand.